Taxation and business activity statement agents must maintain professional indemnity (PI) insurance following a ruling by the Administrative Appeals Tribunal.

The ruling comes in response to an appeal by tax agent Ferdinand Lengyel against a policy implemented by the Tax Practitioners Board last July requiring tax and business activity statement agents to hold PI insurance unless exempted.

Mr Lengyel claimed exemption on the basis he has a low turnover and can meet potential claims from his own resources, but his argument was rejected by the tribunal.

It says PI can be obtained at low cost, protects consumers and guards against unforseen circumstances.